4 ms·

You're equating buying a house to buying a lottery ticket. These are opposite ends of the risk scale. These are not alike in any way.

elsewhen 7y ago
I agree that lotteries are close to one side of the risk scale but real estate is closer to the middle than to the other extreme. The other extreme is U.S. treasuries. The last recession was a great illustration of the risk inherent in real estate.
- SketchySeaBeast 7y ago
  And the US treasuries won't even keep up with inflation. If you invested yesterday you'd need to lock in for at least 20 years before you got even 1% return.
Ididntdothis 7y ago
Ten years ago a lot of people learned that housing is not as safe as they thought.
- abstractbarista 7y ago
  It actually is. You just can't be over-leveraged. The bank will give you waaayy more money than should ever responsibly be taken. Combined with emergency savings, you are quite safe as a homeowner.
  - Ididntdothis 7y ago
    Yes if you stay within your limits. But if you start loading up on debt because of low interest then things can go bad very quickly. So the advice go stop saving is bad.
  - amiga_500 7y ago
    And how do you bid in a market where every house has >1 bidder and banks are lending waaayy more than is responsible?
    - voisin 7y ago
      This! The housing market seems to have punished anyone with a conservative financial mindset.
      - amiga_500 7y ago
        It forces you to fight with the least conservative, and the banks pour on more and more credit to appropriate ever greater swathes of national surplus. No doubt someone will say "you don't have to buy", but then you have to rent. Forever. Because they keep bailing out housing.
- tathougies 7y ago
  No. They learned that buying a house with ridiculous terms and unlimited downside is not as safe as they were deluded to believe. Even in 2008, most people paid their mortgages, and were fine, housing wise.

elsewhen 7y ago

I agree that lotteries are close to one side of the risk scale but real estate is closer to the middle than to the other extreme. The other extreme is U.S. treasuries. The last recession was a great illustration of the risk inherent in real estate.

SketchySeaBeast 7y ago
And the US treasuries won't even keep up with inflation. If you invested yesterday you'd need to lock in for at least 20 years before you got even 1% return.

Ididntdothis 7y ago

Ten years ago a lot of people learned that housing is not as safe as they thought.

abstractbarista 7y ago
It actually is. You just can't be over-leveraged. The bank will give you waaayy more money than should ever responsibly be taken. Combined with emergency savings, you are quite safe as a homeowner.
- Ididntdothis 7y ago
  Yes if you stay within your limits. But if you start loading up on debt because of low interest then things can go bad very quickly. So the advice go stop saving is bad.
- amiga_500 7y ago
  And how do you bid in a market where every house has >1 bidder and banks are lending waaayy more than is responsible?
  - voisin 7y ago
    This! The housing market seems to have punished anyone with a conservative financial mindset.
    - amiga_500 7y ago
      It forces you to fight with the least conservative, and the banks pour on more and more credit to appropriate ever greater swathes of national surplus. No doubt someone will say "you don't have to buy", but then you have to rent. Forever. Because they keep bailing out housing.
tathougies 7y ago
No. They learned that buying a house with ridiculous terms and unlimited downside is not as safe as they were deluded to believe. Even in 2008, most people paid their mortgages, and were fine, housing wise.